Swarm City Financial Status
as of February 28, 2017
Swarm City is creating a sharing economy platform that will allow anyone to create services on top of it. One of the first services will be ridesharing.
In November 2016, we raised 77.689,45 Ether through a token sale which is stored in a multisig wallet (5 out of 7). You can view the multisig here.
As of February 28th, we, the Keyholders to the Multisig, have spent 20.059,68 Ether. We have developed a proposal process for spending money from the multisig. Anyone can submit a proposal to the multisig Keyholders. A Keyholder has to support the proposal as a sponsor, and agrees to accept responsibility and be accountable for the outcome of the proposal. At the end of the agreement, the proposal must be accepted and receive 5 of the 7 Keyholder signatures to be paid out.
Here is a breakdown of the topics we spent Ether on prior to February 28th:
The Development Team received 8.250 Ether so far for creating the concept, the system design, the brand, managing the Beta testing, creating the Terminal and making the token exchange possible. In future months we will continue to spend 2.000 Ether each month on the development of Boardwalk and the ridesharing service.
To facilitate community growth, communicate project updates, and create brand consistency, mainly through Facebook and Twitter, we spent 6.240 Ether until the middle of February. Unfortunately, the results did not reflect the expected outcome, and therefore we decided to use a different strategy from February 15th on and will spend less money but more effective. The current allocation of 2.500 Ether is allocated to cover outreach efforts until the end of April 2017.
Our smallest Budget so far has gone into support topics. We only spent 125 Ether until today. This will be increased with the release of the Live product. We will assign a budget for creating a state of the art support concept and tools. In the meantime, we will continue to allocate 250 Ether per month to give support in Slack, Facebook and Twitter.
In addition, we spent 2.944,68 Ether on legal support and creating the administrational and organizational structure of Swarm City. Legal support was needed to evaluate the legacy we inherited and protecting the project from possible claims. This is an ongoing expense, however the costs will be reduced significantly. The recurring allocation is 750 Ether per month for the Business Hive until the end of May.
Overall, our average burn rate over the past 4 months is 5.014,92 Ether per month. At this rate we will be able to maintain the project from the funds raised for another 11 months, extending into January 2018. We are optimistic that we may be able to reduce the average burn rate. Still we will do everything to make this project successful and will allocate more money to marketing or business development in the near future.
In the beginning of Q2, we will release #Boardwalk and soon after that we will have #NeedARide functionality.
Click here to see the breakdown of the Budget and spendings in our spreadsheet.
Author: Bernd Lapp
About Swarm City
Swarm City is the first truly decentralized peer to peer sharing economy, enabled by the SWT token, running on the Ethereum blockchain.